Mortgage Bank Association board member Jeff Taylor told Insider that home prices in the U.S. could fall between 4% and 6% countrywide and between 7% and 9% in select markets.
Home prices are forecast to decrease as the Federal Reserve pushes for interest rate hikes.
- Taylor's forecast means home prices could decrease for a second consecutive year after the Fed started increasing interest rates.
- He believes trading volume in the housing market would fall to a 40-year low, even after the 30-year mortgage rate has dropped 100 basis points since October.
- He anticipates two more interest rate hikes from the Federal Reserve owing to a booming labor market.
- Taylor added that the housing market is at a strong equilibrium between sellers and buyers.
